Auto-enrolment enters next phase

Small family businesses will have to start paying into pensions for their workers under automatic enrolment from this week, as will people with a single employee.

The Government's flagship scheme to get the nation saving for retirement is now entering its next phase.

With large organisations and medium-sized companies already making contributions under the initiative, having signed up since its launch in autumn 2012, the baton has been handed to small firms.

Businesses with fewer than 30 employees on their books will start paying into pensions over the course of the next two years, beginning with around 14,000 small and micro businesses from this month.

Hairdressers and grocers will be among those included.

Even people who employ just one person, such as a nanny or a carer, might also have to follow suit, as the scheme helps workers put money away for their later years.

Copyright Press Association 2015